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Power Purchase Agreement Solar

Power Purchase Agreement Solar Template for United Arab Emirates

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Key Requirements PROMPT example:

Power Purchase Agreement Solar

I need a Solar Power Purchase Agreement for a 500kW rooftop installation on our commercial building in Dubai, with a 15-year term starting March 2025, including standard UAE grid connection requirements and DEWA compliance provisions.

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Document background
The Solar Power Purchase Agreement (PPA) is a crucial document for implementing solar energy projects in the United Arab Emirates, reflecting the country's commitment to renewable energy development under its Energy Strategy 2050. This agreement is typically used when a solar power producer intends to sell electricity generated from a solar installation to a commercial, industrial, or utility purchaser. The document incorporates specific requirements of UAE federal law and emirate-level regulations, including those from authorities such as DEWA and ADWEA. It covers essential elements such as energy pricing mechanisms, delivery commitments, technical specifications, and performance standards, while ensuring compliance with local grid codes and environmental regulations. The agreement also considers UAE-specific commercial practices, including potential Sharia compliance requirements and local content provisions.
Suggested Sections

1. Parties: Identification of the power producer (seller) and the power purchaser (buyer), including their legal status and registration details

2. Background: Context of the agreement, including project overview and parties' intentions

3. Definitions: Detailed definitions of technical, commercial, and legal terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of solar power, including minimum purchase commitments

5. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights

6. Pricing and Payment: Tariff structure, payment terms, billing procedures, and dispute resolution for payments

7. Metering and Billing: Requirements for measuring delivered electricity, meter testing, and billing procedures

8. Construction and Installation: Requirements and timeline for the construction and installation of the solar facility

9. Operations and Maintenance: Obligations regarding system operation, maintenance requirements, and performance guarantees

10. Performance Standards: Required technical standards, performance metrics, and guaranteed output levels

11. Grid Connection: Requirements and responsibilities for grid connection and compliance with utility requirements

12. Force Majeure: Definition of force majeure events and their consequences

13. Representations and Warranties: Standard warranties and representations from both parties

14. Insurance: Required insurance coverage and minimum insurance levels

15. Assignment and Change of Control: Conditions for assignment of rights and obligations, change in control provisions

16. Governing Law and Dispute Resolution: Choice of UAE law and dispute resolution mechanisms

17. Notices: Process and requirements for formal communications between parties

Optional Sections

1. Environmental Attributes: Allocation of renewable energy certificates and environmental credits - include when trading of environmental attributes is relevant

2. Storage Systems: Provisions for battery or other storage systems - include when the project includes energy storage components

3. Land Rights: Terms regarding land use and access rights - include when the system is ground-mounted or requires specific land arrangements

4. Interconnection: Detailed interconnection requirements - include when complex grid connection arrangements are needed

5. Local Content Requirements: Provisions regarding local content and emiratisation requirements - include when project falls under specific local content regulations

6. Islamic Finance Provisions: Specific provisions to ensure Sharia compliance - include when Islamic financing is involved

7. Export Limitations: Provisions regarding export limitations to the grid - include when grid export restrictions apply

8. Capacity Extension Rights: Terms for future capacity additions - include when phased development is contemplated

Suggested Schedules

1. Technical Specifications: Detailed technical specifications of the solar PV system

2. Site Description: Detailed description and drawings of the project site

3. Testing and Commissioning Procedures: Procedures for testing and commissioning the system

4. Performance Guarantees: Detailed performance guarantee calculations and methodologies

5. Tariff and Payment Calculations: Detailed pricing formulas and payment calculations

6. Form of Performance Security: Template for performance security or bank guarantees

7. Operating Procedures: Detailed operating procedures and protocols

8. Metering Specifications: Technical requirements for metering equipment and procedures

9. Grid Connection Requirements: Detailed technical requirements for grid connection

10. Form of Direct Agreement: Template for direct agreement with lenders if required

11. Insurance Requirements: Detailed insurance requirements and minimum coverage levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Date
Actual Monthly Production
Applicable Law
Authority
Bank Guarantee
Billing Period
Business Day
Commercial Operation Date
Connection Point
Contract Year
Deemed Energy
Delivery Point
Design Capacity
DEWA
Direction to Pay
Dispute
Effective Date
Electricity Law
Emergency
Energy Management System
Environmental Attributes
Environmental Law
Expected Annual Production
Facility
Force Majeure Event
Good Industry Practice
Governmental Authority
Grid
Grid Code
Installation Works
Interconnection Agreement
Invoice
Land
Lender
Maintenance Schedule
Metering Equipment
Minimum Performance Guarantee
Monthly Payment
Operating Parameters
Operating Period
Output Guarantee
Performance Bond
Performance Test
Permitted Interest Rate
Point of Common Coupling
Power Purchase Rate
Premises
Project
Project Documents
Prudent Operating Practice
PV System
Qualified Personnel
Reactive Power
Reference Rate
Regulatory Authority
Required Consents
Safety Requirements
Solar Energy System
Solar Facility
Solar Photovoltaic Plant
System Loss
Technical Specifications
Term
Termination Date
Testing Protocol
Transmission System
UAE Dirham
Utility
Clauses
Parties and Recitals
Definitions and Interpretation
Sale and Purchase Obligations
Term and Termination
Construction and Installation
Testing and Commissioning
Operations and Maintenance
Performance Standards
Metering
Billing and Payment
Grid Connection
Technical Requirements
Environmental Compliance
Force Majeure
Change in Law
Representations and Warranties
Covenants
Insurance
Indemnification
Liability
Assignment
Confidentiality
Dispute Resolution
Governing Law
Notices
Health and Safety
Site Access
Intellectual Property
Records and Audits
Security
Emergency Procedures
Interconnection
Default
Remedies
Lender Rights
Taxes
Change Control
Local Content Requirements
Decommissioning
Anti-corruption
Regulatory Compliance
Relevant Industries

Energy & Utilities

Real Estate & Construction

Manufacturing & Industrial

Commercial & Retail

Government & Public Sector

Healthcare

Education

Hospitality & Tourism

Data Centers & Technology

Agriculture

Relevant Teams

Legal

Finance

Procurement

Operations

Technical

Risk Management

Sustainability

Commercial

Project Development

Compliance

Engineering

Environmental

Facilities Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technical Officer

Project Development Manager

Energy Trading Manager

Legal Counsel

Procurement Manager

Sustainability Director

Facility Manager

Technical Director

Commercial Manager

Risk Manager

Renewable Energy Specialist

Grid Connection Engineer

Environmental Compliance Manager

Contract Administrator

Finance Director

Operations Manager

Industries
Federal Law No. 2 of 2015: The UAE Commercial Companies Law, which governs all commercial transactions and business relationships in the UAE, providing the basic framework for contractual agreements including PPAs
UAE Federal Law No. 24 of 1999: Protection and Development of the Environment Law, which sets environmental standards and requirements that solar projects must comply with
Cabinet Resolution No. 31 of 2010: Concerning Organizing the Activities of the Electricity Sector, which provides the regulatory framework for electricity generation and distribution
Dubai Law No. 6 of 2011: Regulating the participation of private sector in electricity and water production in Dubai, crucial for private solar PPA arrangements
DEWA Standards and Requirements: Technical guidelines and connection requirements for solar PV installations in Dubai, including the Shams Dubai initiative requirements
Abu Dhabi Regulation and Supervision Bureau (RSB) Regulations: Regulations governing power generation and water desalination in Abu Dhabi, including specific requirements for renewable energy projects
Federal Law No. 18 of 1993: Commercial Transactions Law, which provides the framework for commercial contracts and financial transactions
UAE Civil Code (Federal Law No. 5 of 1985): Provides the general principles of contract law and obligations that would apply to PPAs
UAE Energy Strategy 2050: National strategy document setting targets for renewable energy adoption and providing policy framework for solar development
Federal Law No. 4 of 2012: Regulation of Competition, which may affect pricing and market structure aspects of PPAs
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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